Intrinsic value is based on:

A-noise in financial markets

B-perceived risk and return data

C-true/accurate risk and return data

D-market data

Biotechnology firms A and B both made $10,000,000 last year (spending on research and development is reflected in this number). If everything is the same except that A spent $1,000,000 on research and development and B spent $10,000 on research and development, which company created the most value?

A) Company B

B) Neither company created value.

C) It does not make a difference. The both created the same amount of value.

D) Company A